Tips, tip pools and the tip credit

Restaurant platforms such as Basil POS can now send tips per shift as tips.card and tips.cash, and pool them by rule: by hours worked, by role points, or a fixed share for the kitchen. The pool is split before taxes are calculated, and each employee’s share appears as its own line on the paystub.

Where a state allows a tip credit, Payrun checks every pay period that cash wages plus tips reach the full minimum wage, and adds a make-up line when they do not. States that do not allow a tip credit, such as California and Washington, are handled without any setting.

In the annual summary, employers also get the tip and wage figures they need to claim the FICA tip credit on their federal return.